Banks pledge to keep London relevant in financial world – Domestic data for UK less supportive

German trade balance stats due shortly – UK to offer trade deficit data as well

The Euro Pound Sterling exchange rate was able to strengthen on Thursday as Eurozone ecostats disappointed and investors took a break from the week’s earlier Sterling sell off.

However, with the latest UK economic reports indicating that the British economy slowed even before the EU referendum vote was held, the Pound is unlikely to maintain its slight show of strength for long. Economists are expecting growth in the UK’s three primary sectors – construction, manufacturing and services – to slow markedly over the next few months.

That being said, if the political situation in the UK calms, Sterling could firm prior to the formal beginning of the nation’s Brexit negotiations.

‘The account of the early June Vienna meeting also indicated that officials around the single currency area were relying on a rate hike in the US and their purchases of corporate bonds alongside fresh injections of cheap central bank cash to boost growth’.

Pound Sterling Rallies despite Uncertain Mix of Domestic Data

The Pound was in extremely high demand yesterday, although this was an irregular occurrence given how much negativity has been surrounding the UK economy recently.